LOS ANGELES MISSION COLLEGE
Revised 8/29/2014
Table of Contents
Cover Page 1
Table of Contents 2
Preface 5
Code of Ethics 6
Cash Management 7
Cash Collections 7
Cash Reconciliation 10
Money Room / Vault 10
Banking 12
Accounts Payable 16
Purchasing 16
Purchase Orders, Requisitions, & Invoices 16
Managing AP Documents 17
Cal Card Purchases 18
Petty Cash Funds 21
Signature Cards 23
Contracts 23
Student Travel 24
Electronic Budget Transfers 24
Reimbursements 26
Mileage 26
Conferences 26
Revolving Cash Fund 27
Rideshare Incentive Program 31
Accounts Receivable 33
Definitions 33
Collection Process 34
COTOP 35
Write-offs 35
Reporting 36
Accounting Records & Documents 37
Incoming Mail 37
Records 37
Definitions 37
Records Exempt from Public Disclosure 38
Privacy 38
Public Records Requests 38
Retention Policy 38
Records Destruction 39
Auxiliary Organizations 41
Bookstores 41
Cafeterias 45
Community Services 46
Child Development Centers 47
Farm Operations 48
Associated Student Organization 49
College Newspaper 51
Instructional Service Agreements 53
Student Accounting 55
Financial Aid Disbursements 55
Post-9/11 GI Bill (Chapter 33) 56
Institutional Charges / Holds 59
Student Refunds 61
International Students 62
Appendices 64
Appendix “A” – COTOP Procedures 64
Appendix “B” – Farm Operations 65
Appendix “C” – Journalism Account 66
PREFACE
This procedures manual has been prepared to assist campus personnel with the preparation and management of documents, requests, and procedures that are handled in the Accounting and Business Offices. Information is provided for the most common transactions, and frequently used forms are also included for reference. Careful attention and adherence to these procedures will enhance internal controls and reduce the amount of time required to process requests and complete transactions.
This manual will be revised regularly as procedures change or topics are added and deleted.
If more detail is needed on a particular Business Office topic, it is recommended that the CFA / Business Office Group be consulted. The District Accounting Office may also serve
as a source of additional information.
Code OF ETHICS
Per Board Rules (Chapter 1, Article II, Page 7) District employees shall adhere to the following ethical standards:
(a) Exercise due diligence in the ethical performance of his or her duties and model ethically responsible behavior at all times
(b) Facilitate a climate of trust and mutual support through actions that demonstrate respect for reason, freedom of expression, and the right to dissent. Avoid knowingly making false or malicious statements about other employees or students
(c) Use care and integrity in sharing information, guard privacy rights of all individuals, and avoid disclosing information about colleagues or students obtained in the course of professional service unless disclosure serves a compelling professional purpose or is required by law
(d) Avoid entering into or continuing relationships with other employees or students that create or sustain conflicts of interest, such as those that may be viewed as harassment, unequal power relationships, or those of a sexual nature
(e) Avoid entering into or continuing relationships that create or sustain conflicts of interest as they relate to contractual obligations for and with the District and its colleges and which may lead to personal gain
CASH MANAGEMENT PROCEDURES
Cash Collections
Although the ultimate responsibility for cash management of the college lies with the President, the operational responsibility for cash collections, deposits, maintenance of proper records and the timely preparation of cash collection reports to the District Offices lies with the College Financial Administrator (CFA) or designee.
It is also the responsibility of the CFA or his/her designee to ensure that complete accounting records are maintained for audit purposes and that proper controls are in place for the safeguarding of District funds. All cash, checks and credit card slips shall be received in the Business Office except for Bookstore, Cafeteria, and other receipts authorized by the CFA to be collected at other campus locations.
To ensure that a proper accounting of District funds occurs, all collections of cash on a campus must be deposited with the campus Business Office on the day collected or no later than the morning of the subsequent business day. Collections received in the Business Office shall be deposited to the appropriate bank account on the following business day after being received.
Cash collections include, but are not limited to:
Enrollment fees
Tuition fees
Material fees - (Community Services)
Non-resident tuition
Fees assessed under Civic Center Act
Parking fees
Library fines
Deposits for District property loaned to students
Production account income (Instructional)
Community Services income
All ASO income (Including ASO Club income)
Transcript fees
Drop fees
Audit fees
Bookstore collections
Cafeteria collections
Child Development Center fees
Gym membership fees
Employee Collections (Retirement parties, etc)
Other
1. A receipt must be issued at the point of initial collection for all cash received.
a. Cash registers shall be used for all over-the-counter collections. Collections should be keyed into the register and each customer is to be provided with a register receipt. (See Education Code sections 72600 and 76065).
b. If a cash register is not available, pre-numbered cash receipt forms should be used. The cash receipt form should include: the date received, customer’s name, description of receipt, amount received, account(s) credited and payment type (cash, check or credit card). One copy must be given to the customer and the second copy maintained in a file. Photocopies of checks over $500 shall be made and filed with the cash receipt form along with any other relevant supporting documentation, (i.e., memos, remittance advices, etc.) If photocopying is not possible, then the payee’s bank, account number, and check number shall also be recorded. The file must account for the entire sequence of form numbers and shall be maintained in the Business Office.
c. Community Services class fees shall be collected in the Business Office unless alternate arrangements are made by the responsible administrator, the CFA, and the VP of Administrative Services. Regardless of the place of collection, proper internal cash controls must be kept intact and are the responsibility of the CFA or designee.
d. For Community Services fees received for the use of facilities such as tennis courts or swimming pools, a pre-numbered ticket may be issued, or a list of users may be prepared each day. For Community Service classes the amount received from each student will be listed. These amounts can be recorded on attendance sheets.
e. For collections received in the mail, a schedule must be prepared. The schedule shall record the date received, payee, purpose, amount and account(s) to be credited. If the check is over $500, it shall be photocopied, or the payer’s bank, account number, and check number will be recorded on the schedule. All remittances received in the mail should be delivered directly to the Business Office for deposit.
2. During periods of heavy volume, it is recommended that cash collected outside the Business Office be delivered to the Business Office at least twice a day. Fitness center should forward cash collection to Business Office whenever the collection is accumulated to $ 100 or above during non-peak operation time.
a. Excess cash is to be removed from the cash register(s) periodically. Each cashier shall count and remit to his/her manager any large bills not needed to provide change to customers. The manager shall give the cashier a receipt recording the date, time, register, cashier, and amount received. This receipt is to be placed in the cash register drawer. At the end of each day or when a cashier’s shift is over, the procedures outlined in Section 4a are to be followed.
b. During these times it is recommended that the Business Office make at least two deposits.
3. The Business Office shall deposit cash collections on a daily basis. Deposits should be made within 24 hours of collection or by the next business day.
a. All money received directly by the Business Office shall be counted and batched each day and prepared for deposit.
b. Money collected outside the Business Office shall be recounted by the Business Office in the presence of the person making the deposit. A receipt is to be issued upon completion of the count. If there is a discrepancy between the amount counted and the transmittal, the discrepancy must be resolved before money is deposited. The deposit must always be for the actual dollar amount received, and any missing funds must be accounted for.
Upon the approval of the CFA and the VP of Administrative Services, certain collections such as those made by the Bookstore and Cafeteria do not have to be recounted and re-verified by the Business Office personnel if the funds have been properly counted, verified, and sealed by authorized staff. In this case, the Business Office shall still issue a receipt to the remitter for any funds received.
c. All checks received indirectly or directly by the Business Office are to be stamped "For Deposit Only" to the appropriate Los Angeles Community College District account.
d. The Business Office shall use the services of an armored delivery service for all deposits. Funds held overnight on campus shall be minimized through frequent bank deposits.
4. Collections made outside the Business Office must be deposited daily with the Business Office. These collections include but are not limited to the Bookstore, Cafeteria and other authorized collections.
a. A cashier shall start his/her shift with a new cash drawer with a predetermined amount of money in it. At the end of each day or when a cashier’s shift is over, cash register readings (Z Reports) shall be printed and the collections in each register counted. Each cashier is accountable for the money collected during the period of time he/she worked on the register. Therefore, cash register readings should be recorded and the collections counted by each cashier after his/her shift is over. All cash collections must be reconciled to the cash register receipts at the end of his/her shift. A unit supervisor must be notified of any cash overages or shortages. A cash shortage or overage log must be maintained by unit supervisors indicating date, name of cashier, amount, and reason for any shortages or overages. The total collections will then be sent to the Business Office along with a transmittal indicating the amount of collections counted and remitted.
b. For other collections such as Community Service fees, Library fines, etc., a transmittal must be prepared indicating the amount of collections counted and remitted. For Community Services classes, a copy of the attendance sheet indicating the students who have paid must be submitted. For fees received for the use of facilities (swimming pool, tennis court, etc.) where pre-numbered tickets are issued, the number of tickets issued on that day and the last ticket number issued must be indicated. The amount of money actually remitted must be compared with the amount of income that should have been collected according to the attendance sheets and tickets, and any discrepancies shall be reconciled.
Cash Reconciliation
At the end of each month, cash on hand shall be reconciled by comparing a physical count done on the Change Fund Count Sheet with the change fund general ledger account.
All month-end reconciliation reports shall be forwarded to the CFA no later than the end of the second week for the previous month and on a quarterly basis to management. Any discrepancies shall be immediately reported to the Vice President or his/her designee with recommended corrective action.
Money Room / Vault
Only the CFA and other assigned Business Office employees as designated by the CFA are to enter into the Money Room or Vault area. It is recommended that a log sheet be maintained of everyone who enters the Money Room or Vault area other than the assigned money room cashier. The log shall provide the name of the individual, the individual's signature, date of entry, time in and out, and the purpose for access. At no time shall anyone be in the Money Room or Vault except in the presence of at least one of the money room cashiers without the expressed written permission of the CFA.
Daily Deposits
The CFA shall appoint a Business Office employee to conduct daily cash counts and to prepare deposit slips and deposit packages. Each Monday or first business day following the weekend, collection reports shall be generated as needed and forwarded to the CFA or designee for reconciliation and approval.
Once the cash receipts from the front-line cashiers are counted, the deposit shall be prepared. The Business Office supervisor shall reconcile the daily deposit by cross checking the cash receipts information on the Miscellaneous Collections Report with the actual bank deposits. Any discrepancies must be researched and rectified.
Upon the final count of collections from Community Services, the Library, and Admissions (usually fees from transcripts), receipts are issued to the appropriate division’s personnel, a
deposit slip is prepared, and then a copy is given to a front-line cashier to ring up on the cash register.
Upon the final count of Cafeteria and Bookstore collections, cash count slips are issued, deposit slips are prepared, and paperwork is forwarded to the individual(s) responsible for the daily and weekly cash collection reports.
Change Funds
All new change funds shall be approved by the CFA or designee, and all approved funds shall be counted and verified monthly by the CFA or designee. Surprise cash counts by a Business Office supervisor shall be conducted on at least a quarterly basis.
Front-line cashiers are to sign a log sheet upon receipt of their startup cash register banks.
Internal Controls
No unauthorized personnel are allowed in the Money Room or the Vault at any time.
All cash collection amounts are to be pre-counted before final count in the Money Room. Pre-counts and final counts (deposits) shall be reconciled by Business Office staff.
To ensure the integrity of the deposit, no employee shall operate an individual cash register and also be responsible for the day’s final count and deposit.
Numbered receipts shall be stored in a secure location. A log book recording the inventory of numbered receipts on hand and staff signatures identifying who has been issued receipts shall be kept in the custody of the CFA or designee.